About 39 million Americans will travel 50 miles or more from home during the Independence Day holiday weekend, a 2.5% decline from the 40 million people who traveled a year ago because of gasoline prices, AAA said today. The Independence Day holiday travel period is defined as Thursday, June 30 to Monday, July 4.
The percentage of travelers with a household income of $50,000 or less is expected to decrease from 41% to 33%, while travelers with a household income of more than $100,000 are expected to increase to 35% from 26% since gasoline prices are less significant to them.
The drop in auto travel is mainly due to fuel prices being about one dollar per gallon higher than last year, according to Glen MacDonell, director, AAA Travel Services. Not surprisingly increased fuel costs are also responsible for a shift in the demographics of the typical Independence Day traveler as higher prices impact lower income households more than wealthier people.
Travelers with household incomes of $50,000 or less is expected to decrease from 41% to 33%, while travelers with household incomes of more than $100,000 are expected to increase to 35% from 26%.
U.S., energy tycoon T. Boone Pickens claims that based on the latest figures from the Federal Reserve Economic Database, the U.S. imported 62% of its oil, or 362 million barrels in May 2011, sending approximately $41.7 billion – $934,357.63 per minute- to foreign countries, many of whom actively oppose American interests while being defended by American troops.
The amount of money spent each month on gasoline is unlikely to vary much across household income groups, however the “share of total spending fuel is obviously going to consume a larger share of the budget for lower income households,” AAA, the nation’s largest auto club points out.
AAA’s projections are based on economic forecasting and research by IHS Global Insight. The Boston-based economic research and consulting firm teamed with AAA in 2009 to jointly analyze travel trends during the major holidays.
